FAC Explorer

Finding 1113703 (2024-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-03-26
Audit: 348481
Organization: Youth Shelters and Family Services, Inc. (NM)
Auditor: Hinkle + Landers PC

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) was not prepared on time and needed adjustments, leading to noncompliance with federal regulations.
  • Impacted Requirements: Compliance with 2 CFR 200.510(b) was not met, risking incorrect major program selection.
  • Recommended Follow-Up: Establish internal controls for timely SEFA preparation, ensure accurate reconciliation with the general ledger, and regularly review QuickBooks job categories against grant trackers.

Finding Text

2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.

Categories

Reporting Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 537253 2024-002
    Significant Deficiency
  • 537254 2024-002
    Significant Deficiency
  • 537255 2024-002
    Significant Deficiency
  • 537256 2024-002
    Significant Deficiency
  • 537257 2024-002
    Significant Deficiency
  • 537258 2024-002
    Significant Deficiency
  • 537259 2024-002
    Significant Deficiency
  • 537260 2024-002
    Significant Deficiency
  • 537261 2024-002
    Significant Deficiency
  • 1113695 2024-002
    Significant Deficiency
  • 1113696 2024-002
    Significant Deficiency
  • 1113697 2024-002
    Significant Deficiency
  • 1113698 2024-002
    Significant Deficiency
  • 1113699 2024-002
    Significant Deficiency
  • 1113700 2024-002
    Significant Deficiency
  • 1113701 2024-002
    Significant Deficiency
  • 1113702 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $656,797
93.550 Transitional Living for Homeless Youth $272,351
93.623 Basic Center Grant $199,994
93.557 Education and Prevention Grants to Reduce Sexual Abuse of Runaway, Homeless and Street Youth $150,000
14.239 Home Investment Partnerships Program $62,180
14.218 Community Development Block Grants/entitlement Grants $20,000
10.555 National School Lunch Program $8,850
10.558 Child and Adult Care Food Program $432